TSMC Has Bought ASML’s High-NA EUV Machines, But Here’s Why They’re Staying in the Lab

At TSMC's annual shareholders' meeting on June 4, 2026, Chairman and CEO C.C. Wei addressed one of the most sensitive questions in the semiconductor industry: whether the world's largest contract chipmaker is falling behind rivals by refusing to buy ASML's latest lithography tools. His answer was a firm no, accompanied by a strategic clarification.

Wei confirmed that TSMC has already purchased High-NA EUV lithography systems from ASML, but these machines are currently being used exclusively for research and development, not for mass production . He directly rejected speculation that the company had decided to skip the technology altogether .

The $400 Million Question: Why TSMC Isn't Deploying High-NA EUV

Wei’s explanation for not introducing the tools into manufacturing came down to a single word: cost. Each High-NA EUV machine carries a price tag of more than $400 million, roughly double that of existing EUV equipment . Wei told shareholders the company is waiting until the tools become economically viable for high-volume production .

This position clarifies confusing headlines from April 2026, when TSMC Deputy Co-COO Kevin Zhang said the company had "no current plans" to adopt High-NA EUV and called the machines "very, very expensive" . At the shareholder meeting, Wei walked back the impression that TSMC was permanently opting out. The real strategy, he explained, is to extend the performance of existing low-NA EUV tools for as long as possible. TSMC's R&D team continues to find ways to scale and improve chip performance without switching to the next-generation equipment, a capability that Zhang had separately called "amazing" .

Industry analysts now expect TSMC’s A13 node, targeted for 2029, will not require High-NA EUV, pushing the mass-production debut for the technology at TSMC to some point beyond that timeframe .

The Competitive Landscape: Who’s Moving First

Wei's deliberate pace stands in contrast to the aggressive moves by Intel and SK Hynix. Both companies are preparing to use High-NA EUV tools for advanced AI logic and high-bandwidth memory chips as early as 2027 . Intel, which received the industry's first High-NA EUV system in December 2023, has already exposed roughly 300,000 wafers on its development machines as it prepares for its 14A node . SK Hynix became the first chipmaker to assemble a High-NA tool for R&D at a memory facility .

ASML CEO Christophe Fouquet added pressure to the timeline in May 2026, stating that the first commercial chips produced on High-NA EUV machines—spanning both memory and logic products—would arrive “within months” .

Wei dismissed any suggestion that early movers are gaining a permanent advantage. He said TSMC has “never lacked competitors” and will continue to rely on process innovation and existing EUV optimization rather than rushing into an expensive tool transition . He specifically cited Intel’s 18A process and Samsung Foundry as competitive pressures, but expressed confidence that TSMC will “keep working to stay ahead” .

AI Demand Is Outpacing Supply, and It Won’t Let Up

Beyond the equipment strategy, Wei delivered a stark message about the artificial intelligence boom: “AI demand is so high, we can only produce so much.” He told shareholders that demand for advanced semiconductors driven by AI will remain supply-constrained for years to come .

Demand is coming from consumers, enterprises, and sovereign AI programs across governments, and Wei said customers remain overwhelmingly optimistic about the AI industry’s trajectory . Even with new manufacturing capacity, including ongoing factory expansions in the United States, TSMC cannot fulfill all the orders it is receiving .

Financial Results Reflect the Boom

The AI surge is flowing directly into TSMC’s financials. The company reported Q1 2026 revenue of NT$1.13 trillion ($35.7 billion), a 35% increase year-over-year, and net profit jumped 58% to a record T$572.5 billion ($17.7 billion) . Wei guided for full-year 2026 revenue growth of more than 30% .

These figures follow a record 2025, when revenue and earnings per share both hit all-time highs and the stock price more than doubled, climbing from NT$950 to NT$2,425 per share in a single year .

To keep pace with demand, TSMC plans 2026 capital expenditures of $52 billion to $56 billion, much of it directed at expanding advanced-node manufacturing capacity .